Compare Home Affordability by City
Compare how home prices stack up against incomes in different cities. See how many "years of income" a typical home represents.
Compare Home Price-to-Income Ratios Across Cities
See how many "years of income" a typical home represents in any US city. Compare affordability between two cities or use your own numbers for a personalized view.
Note: This tool uses city-level median home prices and household incomes. Actual home prices vary by neighborhood, property type, and condition. The price-to-income ratio is a general affordability indicator, not mortgage advice.
The Price-to-Income Ratio Explained Simply
The home price-to-income ratio tells you how many years of gross income it would take to equal the price of a typical home. If the median house costs $400,000 and the median household earns $100,000, the ratio is 4×. That's four years of earnings—before taxes, before food, before anything else. A generation ago, most American cities sat around 2.5× to 3.5×. Today, plenty of metros have climbed past 6× or 8×.
A common mistake: comparing raw prices between cities. Someone sees a $250,000 listing in one city and a $450,000 listing in another and assumes the first is more affordable. But if the cheaper city has $40,000 median income (6.25×) while the expensive city has $130,000 median income (3.5×), the pricier home is actually easier to buy on a local salary. The ratio cuts through the noise.
The result helps you decide where homeownership is realistic given typical local earnings—or whether your income puts you ahead of or behind the median buyer in any given market. If you're considering relocation, remote work, or just wondering why your parents bought a house at 27 and you can't at 35, this number gives you the context.
City Affordability Rankings by Ratio
Not all 5× cities feel the same, but the ratio gives you a starting bracket. Here's how affordability categories generally break down:
- Under 3× (Very Affordable): Traditional lending rules work. A median-income household can buy the median home with 20% down and reasonable payments. Cities like Pittsburgh, Cleveland, and Detroit often fall here.
- 3× to 4× (Affordable): The historical norm. Median earners can buy, though saving for a down payment takes a few years of discipline. Think Indianapolis, Columbus, Kansas City.
- 4× to 5× (Stretched): You'll likely need above-median income, help from family, or a longer savings runway. Raleigh, Nashville, and Salt Lake City have drifted into this range.
- Above 5× (Unaffordable): Median-income households struggle without significant existing wealth or dual high incomes. Coastal California, Seattle, Miami, and Austin sit here.
These categories aren't moral judgments—they're descriptions of market math. A city at 7× isn't "bad," but it does mean typical buyers face a harder path than those in a 3× market.
What "3× Income" Misses in 2026
The old "buy a home worth 3× your income" rule was built for a different era. Mortgage rates hovered around 7-9% in the 1980s, but homes were cheap relative to pay. Today's rates are similar, but ratios have doubled in many markets. The rule also ignores several real-world costs:
Mortgage rates
A 3× home at 3% interest has very different monthly payments than a 3× home at 7%. The ratio stays the same, but your budget doesn't.
Property taxes
New Jersey charges 2.4% annually; Hawaii charges 0.3%. On a $400,000 home, that's a $8,400/year difference.
Insurance premiums
Florida and coastal areas have seen premiums triple since 2020. A $300,000 home might cost $5,000-8,000/year to insure.
HOA fees
Condos and planned communities can add $200-800/month. That's $2,400-9,600/year not reflected in the purchase price.
The ratio is a screening tool, not a budget calculator. Two cities with identical 4× ratios can feel completely different once you layer in taxes, insurance, and HOA. Always dig into the ongoing costs before you treat the ratio as the final answer.
Mortgage Rate Sensitivity (Fast Scenario Test)
Interest rates don't change the price-to-income ratio, but they drastically change what you can actually afford each month. Here's a quick reference for a $400,000 home with 20% down ($320,000 loan):
Monthly principal & interest by rate:
- 4% rate: $1,528/month
- 5% rate: $1,718/month (+$190)
- 6% rate: $1,919/month (+$391 vs 4%)
- 7% rate: $2,129/month (+$601 vs 4%)
- 8% rate: $2,348/month (+$820 vs 4%)
At 4%, that $400,000 home (4× on $100,000 income) costs 18.3% of gross monthly income. At 7%, the same home costs 25.5%—still under the 28% guideline, but much tighter. At 8%, you're at 28.2%, right at the edge. Same house, same ratio, very different reality.
If you're comparing cities, ask yourself: would this ratio still work at 7%? At 8%? Rates have swung by 3-4 points within single years recently. The ratio tells you about price vs. income; you still need to run the payment math at current and potential future rates.
Down Payment, HOA, and Insurance Pitfalls
The ratio assumes you can actually come up with the down payment. At 5× income, a 20% down payment equals one full year of gross earnings. Most people can't save a year's salary while also paying rent, eating, and living. Here's where people get tripped up:
Down payment reality check:
- 3× ratio: 20% down = 60% of annual income
- 4× ratio: 20% down = 80% of annual income
- 5× ratio: 20% down = 100% of annual income
- 6× ratio: 20% down = 120% of annual income
At 6×, you'd need to save more than a full year's gross pay—just for the down payment. That's before closing costs (2-5% of price) and moving expenses.
HOA fees are another blind spot. A $350,000 condo with $500/month HOA effectively costs the same as a $425,000 house with no HOA once you factor in 30 years of fees. Insurance has similar hidden weight—flood zones, wildfire areas, and hurricane coasts can add $3,000-10,000/year that doesn't show up in the purchase price.
Before you fall in love with a city's ratio, ask: what's the typical down payment I'd need? What are HOAs like in the neighborhoods I'd consider? What does insurance cost? These answers can add 10-15% to the true affordability burden.
Buyer Checklist for the Next Step
How do I use this ratio to plan my timeline?
Calculate your personal ratio: target home price ÷ your household income. If it's under 4×, you're in traditional territory. If it's 5× or higher, plan for a longer savings runway or explore lower-priced neighborhoods within the metro. Then estimate how long it takes to save 20% down at your current savings rate. That's your realistic timeline.
Should I relocate to a lower-ratio city?
Maybe. If your job is remote or transferable, moving from a 7× market to a 4× market could cut years off your homeownership timeline. But factor in salary differences—some lower-ratio cities also have lower incomes. Calculate whether your purchasing power actually improves or just shifts.
What if I earn above the median in my city?
Your personal ratio is what matters. If the city ratio is 6× but you earn 2× the median income, your effective ratio is 3×. Run the numbers with your actual income, not the city median. The city ratio tells you how most people experience the market; your income tells you how you'll experience it.
How do I factor in current mortgage rates?
Use a mortgage calculator to convert the ratio into monthly payments at today's rates. A 4× ratio at 7% interest puts you around 25-28% of gross income for housing—tight but manageable. A 5× ratio at 7% pushes past 30%, which most lenders consider stretched. The ratio screens cities; the payment math confirms feasibility.
What's a good next step after comparing ratios?
Shortlist 2-3 cities that fit your ratio target. Then research neighborhood-level prices (city medians hide huge variation), property tax rates, insurance costs, and job market strength in your field. The ratio gets you to the shortlist; the details get you to a decision.
Sources & References
Home prices and income data draw from:
- •U.S. Census Bureau - American Community Survey: census.gov/topics/housing - Median home values and household income by metro area.
- •Federal Reserve Economic Data (FRED): fred.stlouisfed.org - Historical price indices and income trends.
- •National Association of Realtors: nar.realtor/research-and-statistics - Median home prices and housing affordability research.
- •Zillow Research: zillow.com/research - Metro-level home value indices.
For Educational Purposes Only - Not Professional Advice
This calculator provides estimates for informational and educational purposes only. It does not constitute travel, financial, legal, or professional advice. Results are based on the information you provide and general guidelines that may not account for your individual circumstances. Costs, fees, and regulations change frequently. Always consult with a qualified travel agent or booking specialist for advice specific to your situation. Information should be verified with official AHLA.com sources.
Frequently Asked Questions
Common questions about the Home Price-to-Income Ratio Comparison tool.
What is a home price-to-income ratio?
The home price-to-income ratio is a simple measure of housing affordability. It divides the median home price by the median annual household income. A ratio of 5× means a typical home costs 5 times the typical annual income. Lower ratios generally indicate more affordable housing markets.
What do 'stretched' or 'unaffordable' mean here?
These are affordability categories based on the ratio: Very Affordable (<3×) means homes cost less than 3 years of income. Affordable (3-4×) is the traditional benchmark. Stretched (4-5×) suggests buyers may need larger down payments or above-median incomes. Unaffordable (5×+) indicates significant barriers to homeownership for typical households.
Where do these home price and income numbers come from?
The tool uses city-level median home prices and household incomes based on census and survey data. This data typically lags current market conditions by 1-2 years. It represents city-wide medians, which can mask significant neighborhood variation.
Is this mortgage, investment, or legal advice?
No. This tool provides general informational comparisons only. It is NOT mortgage advice (doesn't account for rates, terms, or qualification), NOT investment advice (doesn't predict appreciation or returns), and NOT legal advice. Consult qualified professionals for important financial decisions.
How do my own numbers change the picture vs city medians?
If you enter your own target home price and income, the tool calculates your personal price-to-income ratio. This can be higher or lower than the city median depending on your situation. For example, if you earn above the median income but are targeting a median-priced home, your personal ratio would be better than the city average.
Is a 6× ratio high?
Historically, a 3× ratio was considered affordable. A 6× ratio would be considered 'unaffordable' by traditional standards—homes cost 6 years of income. However, many expensive metros (San Francisco, New York, Los Angeles) now have ratios of 8× or higher. What's 'normal' depends on the local market.
Why doesn't this account for mortgage rates?
The price-to-income ratio is a simple snapshot comparison that's been used for decades. It doesn't include mortgage rates because rates change frequently and affect monthly payments, not the underlying ratio. A comprehensive affordability analysis would include rates, down payment, taxes, and insurance.
Can I use this to decide where to buy a home?
Use this as one data point among many. The ratio helps compare relative affordability between cities, but doesn't capture neighborhood variation, job markets, quality of life, or your personal financial situation. For major decisions, research local markets, get mortgage pre-approval, and work with local professionals.
What if my city isn't in the database?
If your city isn't found, the tool uses U.S. average values as a fallback. You'll see a 'Using defaults' label. For accurate results, enter your own home price and income values in personal mode, or choose a nearby city that is in the database.
How should I interpret comparing two cities?
When comparing cities, look at both the ratio and the absolute numbers. A city might have a lower ratio but higher absolute prices if incomes are also high. Consider tradeoffs: a city with a 4× ratio and $80k median income is different from one with 4× ratio and $50k income—same ratio, different lifestyle.